Market demand and the duration of business projects: the housing industry
In this study, we propose that companies strategically choose to pursue projects of certain duration according to the fluctuations in market demand conditions. During a market upturn, when more business opportunities are available, companies choose short projects, committing thus their resources for a short period of time and so to better exploit the upcoming business opportunities. On the other hand, in a market downturn projects of longer duration are preferable, since they protect the company from the consequences of adverse market conditions. Finally, these insights appear relevant at least in the US housing industry, where builders pursue longer building projects during the market downturn and shorter ones during the market upturn. Copyright © 2010 John Wiley & Sons, Ltd.
Volume (Year): 31 (2010)
Issue (Month): 7 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey A. Miron, 1996.
"The Economics of Seasonal Cycles,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262133237, June.
- Christina D. Romer, 1999.
"Changes in Business Cycles: Evidence and Explanations,"
NBER Working Papers
6948, National Bureau of Economic Research, Inc.
- Christina D. Romer, 1999. "Changes in Business Cycles: Evidence and Explanations," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 23-44, Spring.
- Domowitz, Ian & Hubbard, R Glenn & Petersen, Bruce C, 1993. "Market Structure and Cyclical Fluctuations in U.S. Manufacturing: Reply," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 734-35, November.
- C. Tsuriel Somerville, 2001. "Permits, Starts, and Completions: Structural Relationships Versus Real Options," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 29(1), pages 161-190.
- Kostas Axarloglou, 2003. "The Cyclicality of New Product Introductions," The Journal of Business, University of Chicago Press, vol. 76(1), pages 29-48, January.
When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:31:y:2010:i:7:p:477-487. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.